Training benefits both the company and its staff. However, after the company pays for the training, and the staff acquaints the skills for work from such training, some may think of switching jobs. That would be a big loss to the company which provided the training opportunity to those employees. In order to prevent that situation from happening and to protect company’s interests, it is important for company to conclude a Training Agreement with each of their employees.
According to our daily corporate legal service experiences, there are several aspects foreign employers need to be aware of during signing of a Training Agreement:
1. Identify which types of employee would be appropriate for taking the training courses
The company offers training fees and times for employees to take courses because the company would like to cultivate their employees so that the employees may love their works more and may better serve the company for longer time. However, as the training will cost the company a lot, not every employee may enjoy the precious opportunity at one time, thus, it is important for company to choose the appropriate trainee. For example, we suggest to
exclude the employee under probation period from attending the training, as during the probation period, they may easily quit the job.
2. Include clear description as to the training fee
Generally, the company will pay for all the amount of the training fee including expenses for courses, meals, transportations and reference books and materials. It is better to provide in the Training Agreement, that all the expenses should be paid in advance by the employee then be reimbursed by the company according to valid invoices or receipts. additionally, when there is an off-duty training, an agreement on wages for the training period should be settled beforehand.
3. Include the proper service period
The Chinese law confers the right on companies to specify a required term of service with employees who will enjoy the training courses offered by companies. However, the term of service should be appropriate. If a 10-year long term of service is provided to an employee who only attends three months training courses, such term will be invalid or reversible due to its nature of obviously unfair.
4. Clarify Liquidated Damages
It is also the legal right for the company to claim for liquidated damage when the trainee employee breaches the agreed term of service. However, the company should be careful that the amount of the liquidated damages shall not exceed the amount of the training fees provided by the company and shall not exceed the portion of the training fees allocated to the unperformed portion of the term of service.